The horizontal-equity principle of taxation is not easy to use in practice because
A) different people receive different levels of government benefits even if their incomes are the same.
B) people can use tax loopholes to reduce their incomes below the incomes of other taxpayers.
C) it is difficult to determine whether people are in the same economic situation.
D) some people engage in rent seeking to reduce their taxes below the level other people pay.
C
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Collusion
a. is exactly the same thing as competition. b. involves cooperative actions by sellers at the expense of buyers. c. requires competitive actions by sellers to win customers from rival firms. d. can only be achieved in price-taker markets.
An indifference curve is drawn on a graph with good X on the horizontal axis and good Y on the vertical axis. One point on the curve is X = 5, Y = 5. Which of the following points CANNOT also be on the curve?
A. X = 9, Y = 4 B. d. X = 2, Y = 11 C. X = 6, Y = 4 D. X = 6, Y = 6